Government moves to break monopoly in Delivery services

Government moves to break monopoly in Delivery services

16 June 2021 11:48 am

Steps are being taken to establish an equal playing field for delivery services in Sri Lanka which is currently being dominated by Uber and PickMe. 

Extensive discussions have been held between the State Minister of Cooperative Services, Marketing Development and Consumer Protection Lasantha Alagiyawanna and leading mobile-app based delivery services Uber and PickMe.   

The discussions took place after it was decided to regulate the delivery services following numerous complaints.   

A decision has been taken to register delivery service providers with the Consumer Affairs Authority and regulate them to ensure reasonable prices.   

It has also been decided to formulate a policy on calculation of commissions and transport charges and impose a reasonable cap for selected sub-sectors.   

The State Ministry said that the main objective is to provide the delivery service at a reasonable price to the consumers and also improve competitiveness.   

The whole issue has been  triggered after concerns were raised by a VIP after a large commission was added to food ordered from a hotel by his family via Uber Eats.   

The VIP had then questioned the hotel from where the food was ordered and the hotel had informed the VIP that the food is cheaper when purchased directly from the hotel as opposed to via Uber Eats,.   

Minister Alagiyawanna was alerted and the State Minister called for a meeting with Uber and PickMe.   

Sources said that Alagiyawanna had separate discussions with representatives of Uber and PickMe last week and further discussions are expected to take place this week as well.   

Among the concerns noted apart from the high commission charged by the delivery services is that Uber is not a registered company in Sri Lanka.